Abstract

This paper analyses the effects of the mobile money transaction levy in Tanzania. The data used in the study was obtained from the Bank of Tanzania and the Tanzania Communications Regulatory Authority. The study employs interrupted time series analysis to determine the impact of the government levy on mobile money transactions. The results show a significant decrease in the total amount transacted and the average amount per subscriber after the introduction of the levy. The results indicate that the intervention had a significant impact on the average money transacted by subscribers. The study suggests that policymakers should consider alternative revenue sources other than those which affect the government revenue negatively. Further, the government should encourage people to use mobile money to pay for goods and services to increase government revenue.